The following is a real-world example (and unfortunately not a parable) of what happens when the perils of modern monetary theory (MMT) and price controls both are ignored.

The African Continental Free Trade Area (AfCFTA) is the world’s largest free trade area by the number of countries. It is the most ambitious and, given demographic trends, the most promising free trade project on earth. The AfCFTA matters very much to Africa’s economies separately and to the continent’s collaborative and integrated economic development. If successful, it also carries significant implications for the global economy. As such, the AfCFTA matters. Not just for Africans but for everyone. 

In the last few years, it seems as if there has been a hot new story about a different commodity facing some form of shortage every single day. Most recently we have seen a baby formula shortage. However, that is most certainly not the only one we have seen of late. We have seen chicken wing shortages, lumber shortages, medical product shortages—heck, even toilet paper shortages (although I’ll admit that that last one was probably nothing more than goofy panicking).

Over the past few decades, the executive branch of the federal government has taken an increasingly autocratic approach to governing. Past presidents have unilaterally attempted to bypass Congress due to partisan gridlock and the inevitable tug-of-war involved in governing a nation of 330 million people. President Joe Biden has governed in a similar fashion, regardless of progressive anger at him for not “doing something.”

McDonald’s Corporation has announced that it will permanently leave Russia, closing 850 outlets.

The actions of the authorities in developed countries, essentially an extension of the Keynesian economic policy discourse, have brought the economies into disrepute. These actions consist of immense stimulus and virtually unfunded government indexation of voter income in the face of expected impoverishment amid covid, lockdowns, and other global problems.